2014-15-Undergraduate-Catalog

Financial Aid •

Financial Aid • 92After a student graduates, withdraws, or drops below half-time enrollment, they are givensix months before they must begin repayment of their loans. This period of time is called agrace period. Students are granted one grace period. The grace period may be extended tolonger than six months if the student is on active duty in the military.The amount in Federal Direct Loan a student is able to receive each year is based upontheir academic level and dependency status as determined by the FAFSA. Student whoseparent(s) received a credit denial when applying for the Federal Parent PLUS Loan mayborrow at the independent student level. Undergraduate students determined to bedependent by the FAFSA may borrow a maximum of $31,000, of which up to $23,000 maybe subsidized. Undergraduate students determined to be independent by the FAFSA mayborrow a maximum of $57,500, of which up to $23,000 may be subsidized. Please refer tothe following table for the annual borrowing limits per academic level:Dependent Student Maximum Direct Loan AmountFreshman$5,500 (Up to $3,500 of this amount may be subsidized)Sophomore $6,500 (Up to $4,500 of this amount may be subsidized)Junior or Senior $7,500 (Up to $5,500 of this amount may be subsidized)Independent Student Maximum Direct Loan AmountFreshman$9,500 (Up to $3,500 of this amount may be subsidized)Sophomore $10,500 (Up to $4,500 of this amount may be subsidized)Junior or Senior $12,500 (Up to $5,500 of this amount may be subsidized)As part of their financial aid award notice, students eligible for the Federal Direct Loan willreceive notification of the maximum loan amount they are able to borrow for the academicyear or term. If the student wishes to accept the loan as awarded, decline the loan, orrequest a different amount, they must notify the Office of Financial Aid by signing andreturning the letter as quickly as possible.William D. Ford Direct Federal Parent PLUS Program: Federal Parent PLUS Loans arefederal loans parents can borrow to fund their dependent student’s educational expenses.Students must be considered a dependent by the FAFSA, be a degree-seekingundergraduate, and be enrolled at least half-time. Eligible parents who can borrow a PLUSLoan include a student’s biological parents, whether they were listed on the FAFSA or not,adoptive parents, and stepparents whose income was reported on the FAFSA. Parents mustalso pass a credit check in order to be approved for this loan. Students whose parents donot pass the credit check for the PLUS Loan may borrow additional funds in the FederalDirect Unsubsidized Loan. See the section on the Federal Direct Loan for moreinformation.The Parent PLUS Loan is borrowed directly from the U.S. Department of Education as partof the William D. Ford Direct Loan Program. The interest on Parent PLUS Loans isdetermined each year and is fixed for the life of loan. These loans also carry an originationfee. The origination fee is deducted from the loan amount prior to its disbursal to theuniversity and is subject to change. Parents may borrow for each year of their student’sundergraduate career, though subsequent credit checks will be required.

Commonwealth of Virginia Aid ProgramsVirginia Tuition Assistance Grant: This program is a state-funded, non-need-based grantavailable to full-time undergraduate students whose families are domiciled in Virginia. Onceawarded, it is not necessary to reapply for subsequent years. Recipients may receive thisgrant for up to four years. The application is due July 31 and is available at the Office ofFinancial Aid’s website. Recipients must notify the Office of Financial Aid immediately if theirdomicile moves outside of Commonwealth of Virginia. The amount of the grant is based onannual state funding.Withdrawing from the UniversityShenandoah University will determine eligibility of financial aid for those studentswithdrawing from the university using the following procedures.Financial Aid • 93Return of Federal Financial Aid: The regulations governing the federal student aidprograms require that aid be returned to the federal government for students whocompletely withdraw from the university prior to completing sixty percent of a term(calendar days). Financial aid is awarded for the entire term, which is generally a sixteenweekperiod during the normal academic year. If a student does not complete the entiresixteen weeks, then these federal regulations will determine how much federal aid thestudent has earned. The unearned portion of federal aid must be immediately returned tothe federal government. In some situations, this may leave a student with a balance owed tothe university. Funds are returned to the federal government in the following order: DirectUnsubsidized Loan, Direct Subsidized Loan, Perkins Loan, Graduate PLUS Loan, ParentPLUS Loan, Pell Grant, and the Supplemental Educational Opportunity Grant.Return of State and Institutional Funds: If a student has completed less than sixty percentof the term, the earned portion of state and institutional aid will be calculated based uponthe percent of the term attended by the student. Any unearned aid will be returned to thesource of the funds.Refer to the Tuition and Fees for information on the university fees and refunds.